Last verified: October 2026
Has Tennessee opted into the federal scholarship tax credit?
Yes. TDOE's scholarship granting organization page states that Tennessee has opted to participate in the federal education tax credit, and that federal regulations were released October 1, 2026.
Organizations that want to be on Tennessee's approved SGO list can now file a preliminary interest form, and TDOE says a formal application will follow later this fall.
Who could receive a federal tax-credit scholarship in Middle Tennessee?
Students who are eligible to enroll in a public elementary or secondary school and whose household income does not exceed 300% of area median income can receive scholarships from an approved SGO, according to NCSL's summary of the law. Donors receive a dollar-for-dollar federal credit of up to $1,700 a year.
No Tennessee SGO has announced award sizes yet. For a family whose school costs more than EFS or ESA pays, this may become a second layer starting in 2027.
| What Federal Scholarship Tax Credit is | What it isn't |
|---|---|
| A federal credit for donors, beginning in 2027 | Not yet accepting family applications in Tennessee |
| Operating in Tennessee because the state opted in | Not a state program run by TDOE |
| Aimed at households up to 300% of area median income | Not limited to private school students |
| Paid out by approved nonprofit SGOs | Not a guaranteed amount |